Form Rt-800063 - What To Expect From A Florida Reemployment Tax Audit printable pdf download

RT-800063

What to Expect from a

R. 09/17

Florida Reemployment Tax Audit

A tax audit should be an educational experience that provides you an understanding of your responsibilities and

rights under Florida tax laws. An audit helps businesses identify and correct bookkeeping problems that could

cause more tax liabilities. We want to help you avoid penalties and interest that can result when you do not file

reports or pay taxes correctly or on time.

Why Are Taxpayers Audited?

We conduct reemployment tax audits as required by the US Department of Labor to ensure that we:

•

Enforce Florida tax laws uniformly

•

Deter tax evasion

•

Promote voluntary compliance

•

Educate taxpayers

While we accept most tax returns as filed, we audit some returns to verify accuracy and evaluate compliance.

Many reemployment taxpayers who are audited do not owe more tax. Some audits even result in a tax

refund. Other audits, however, can result in more taxes, penalty, and interest. After your audit is complete,

you can review the audit findings and proposed changes to your tax liability. You have the right to protest the

proposed changes if you disagree with them.

How Was I Selected?

The Department of Revenue audits 1% of active contributing employer accounts annually to verify that wages

have been reported correctly. Reemployment tax audits are selected based on distinct selection criteria.

Some examples of sources used to identify a potential audit lead are:

•

Taxpayer filing data and filing behavior

Third party data

•

(identification of anomalies)

Information sharing programs with other states and

•

state agencies

Statistical data on business industry, size

•

Reemployment Assistance claims

and location

•

Collection items

•

Federal data

What Happens During the Audit?

We conduct two types of audits: those done in our offices (desk audits), and those done at your place of

business (field audits). Audits can be completed using paper or electronic records. The auditor begins by

mailing you a Notice of Intent to Audit Books and Records (Form RT-FL06F) stating that you or your business

will be audited for a specified calendar year. A list of records we want to review will be included with the

Notice. The types of records needed for a reemployment tax audit include:

Balance sheets

Form 1120 and attachments (C‐Corp)

Individual earnings records

Canceled checks

Form 1120S and attachments (S‐Corp)

Master vendor files

Cash disbursement journal

Partnership agreement

Form 990 (non‐profit organizations)

Chart of accounts

Payroll ledger

Forms 1099 and 1096

Check registers

Forms 941, 943, 944 (as applicable)

Payroll summaries

Check stubs

Forms W‐2 and W‐3

Petty cash

Corporate charter

Quarterly Reports, RT‐6s (SUTA)

General ledger

For 940 (FUTA)

Time cards

Income statements

Form 1040, Schedule C (sole

Independent contractor agreement

Work orders/invoices

proprietor) Form 1065 (partnership)

You should maintain your payroll records in accordance with Rule 73B-10.032, Florida Administrative Code.

The auditor will call you to arrange a date for the review of your records. Failure to produce all requested

work records will result in the loss of your “earned tax rate” and the assignment of the “standard tax rate”

(5.4%) until the quarter following your production of the requested records. The auditor will also interview you

or your authorized representative. You must complete a Power of Attorney (Form DR-835) if you want the

auditor to discuss the audit with your authorized representative.

The auditor will ask you about your type of business, organizational structure, accounting methods, and

systems. To minimize disruption of your workplace, you may want to assign certain employees to help the

auditor during a field audit review. An audit may be completed with minimal effort and disruption of daily

business activities if records are easily available. Well-organized records and proper documentation can

save you time, money, and help to speed the completion of an audit.

If we find a discrepancy, a reemployment tax audit may be extended on a year-to-year basis until the

discrepancy no longer exists or for a maximum of five (5) years.

During the audit, you have the right to be informed of basic findings and proposed changes. Feel free to ask

questions. Auditors are there to offer and provide you assistance in complying with Florida tax laws.

When the audit is finished, we will mail you information about completing a survey. The survey asks you to

rate your satisfaction with certain actions, services, or parts of the audit process. Your responses are strictly

confidential. We use the results to improve our audit process.

Florida Department of Revenue, What to Expect from a Florida Reemployment Tax Audit, Page 1

Form Rt-800063 - What To Expect From A Florida Reemployment Tax Audit

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